Contrasting Safety Insurance Group (SAFT) & Global Indemnity (GBLI)

Safety Insurance Group (NASDAQ:SAFT) and Global Indemnity (NASDAQ:GBLI) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Risk and Volatility

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Safety Insurance Group has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Global Indemnity has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.

Insider and Institutional Ownership

81.3% of Safety Insurance Group shares are held by institutional investors. Comparatively, 56.4% of Global Indemnity shares are held by institutional investors. 4.9% of Safety Insurance Group shares are held by company insiders. Comparatively, 41.4% of Global Indemnity shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Safety Insurance Group and Global Indemnity’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safety Insurance Group	$839.11 million	1.70	$62.38 million	N/A	N/A
Global Indemnity	$485.52 million	1.12	-$9.55 million	N/A	N/A

Safety Insurance Group has higher revenue and earnings than Global Indemnity.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Safety Insurance Group and Global Indemnity, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safety Insurance Group	0	1	0	0	2.00
Global Indemnity	0	0	0	0	N/A

Safety Insurance Group currently has a consensus target price of $70.00, suggesting a potential downside of 24.98%. Given Safety Insurance Group’s higher possible upside, analysts plainly believe Safety Insurance Group is more favorable than Global Indemnity.

Profitability

This table compares Safety Insurance Group and Global Indemnity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Safety Insurance Group	8.99%	11.02%	4.21%
Global Indemnity	-1.25%	2.21%	0.79%

Dividends

Safety Insurance Group pays an annual dividend of $3.20 per share and has a dividend yield of 3.4%. Global Indemnity pays an annual dividend of $1.00 per share and has a dividend yield of 2.6%. Safety Insurance Group has increased its dividend for 2 consecutive years. Safety Insurance Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Safety Insurance Group beats Global Indemnity on 11 of the 13 factors compared between the two stocks.

Safety Insurance Group Company Profile

Safety Insurance Group, Inc. provides private passenger and commercial automobile insurance in Massachusetts, New Hampshire, and Maine, the United States. The company's private passenger automobile policies offer coverage for bodily injury and property damage to others, no-fault personal injury coverage for the insured/insured's car occupants, and physical damage coverage for an insured's own vehicle for collision or other perils. It also provides commercial automobile policies that offer insurance for commercial vehicles used for business purposes, including private passenger-type vehicles, trucks, tractors and trailers, insure individual vehicles, and commercial fleets; and homeowners policies, which provide coverage for homes, condominiums, and apartments for losses to a dwelling and its contents from various perils, and coverage for liability to others arising from ownership or occupancy. In addition, the company offers business owners policies that cover apartments and residential condominiums, restaurants, office condominiums, processing and services businesses, special trade contractors, and wholesalers. Further, it provides personal umbrella policies, which provide personal excess liability coverage over and above the limits of individual automobile, watercraft, and homeowner's insurance policies; and commercial umbrella policies, as well as underwrites dwelling fire insurance for non-owner occupied residences. Additionally, the company offers inland marine coverage for homeowners and business owner policies; and watercraft coverage for small and medium sized pleasure crafts. It distributes its products through independent agents. The company was formerly known as Safety Holdings Inc and changed its name to Safety Insurance Group, Inc. in April 2002. Safety Insurance Group, Inc. was founded in 1979 and is based in Boston, Massachusetts.

Global Indemnity Company Profile

Global Indemnity Limited, through its subsidiaries, provides insurance and reinsurance products and services in the United States and internationally. The company operates through three segments: Commercial Lines, Personal Lines, and Reinsurance Operations. The Commercial Lines segment distributes property, general liability, casualty, and professional lines products, as well as products for vacant, and under construction and renovation dwellings. This segment primarily serves small commercial businesses through a network of wholesale general agents, program administrators, brokers, aggregators, and retail agents. The Personal Lines segment offers specialty personal lines and agricultural coverage, including agriculture, mobile homes, manufactured homes, homeowners, collectibles, and watersports primarily through retail agents, wholesale general agents, and brokers. The Reinsurance Operations segment provides third party treaty reinsurance solutions to specialty property and casualty insurance, and reinsurance companies; and professional liability products to companies through brokers, as well as on a direct basis. The company was incorporated in 2016 and is based in George Town, the Cayman Islands.